New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-03-11
AMERICAN SURETY COMPANY
ira METHODS OF DOING BUSINESS.

>-rvpAr ELMER DEeCRIBEs THEM IN CASE BE-
FORE Ex.JUDaE DAVIS AS REFEREE.
whon Ramon Do Rivss La Mar, the wealthy
ubsn. died here few years ago be lett portion OF
"A. Estate in tho form OF trust to his married
S.uvb,er. Mrs Anna De Rivss Herques and the resi-
An. ~ iour ces and uephews who aso to receive
NE rest of the property at Mrs. Herques's death.
Recently her lawyers, Coudcrt Bros, ASKED per-
,oisuiou of the Surrogate have the American Surety
Comnany become her surety in the Gum OF $l53, 600
IN place of the two bondsmtn originally furnished by
nor sTo this Olcott Mestre Gonzalez, the attorneys
Of the nieces ard nephews. objected, on tho ground
That they were not satisfied with the company ana
ssked that an examination OF the proposed surety oe
made The company also invited an examination anu
Surrogate Rollins granted an order ior AN, Is;
overhaung of the company's methods OF oolne uae,
vess Ex Presiding Justice Noah Davis was appointed
referee and Yesterday the was heard IN MS omoe
Elhu ca Root and J. Hoiden Of 6ondert Bros for
G,s fIeroues and L. X. Oloott representa- the pet-
TONERS Mr. rst Sinsss but the
tsst;mony eiSen by the president OF the company,
General Elmer formerly Assistant tan pesma sa1s
COMMUNICATIVE. General Elmer seemed to Oe as
anxious to give information about the companys
methods as Mr.. Ocott was 10 OBTAIN IL 0GaS ;s
uuently the examination went on rapidly lie SAID IN
substance:
orsan1sd With Rsd o Sp
Ssp ie I pure ndey With odn
n se ease of snarsns trustees In
Hdelty matters the operations OF the comply are based
sn,l ' Collateral ss"sry An Illustration Of this is lie
case of Paine. he miser. Mr. Chickering having $loo
900 of the dead maas money obliged by the admin
fsrator to furnish bends for twice that snT ae oans
% the company and theoame surety iSr no
companies FROM whom could only DO Withdrawn ny the
iont consent of tho administrator and the surety COM
bany rhe compsny has sustained a loss In the
law department % the business
Mr.. Olcott asked him whether any check or super
Vsion exercised by the company over the peoPio
It insured. He repliedt
More than three fourhs OF our business sFone with
corporations taking their employees that Is those 10 posi-
lions trust, whole During January and February
we're added lists All OF these are under thu direct
supervision their supericrs We never have 10 Keep
track OF anybody.
In response to another inquiry he said that the
Banker would take. Then Mr. Olcott asked how q
company with only bali million dollars In capital
could do business amounting to twenty-five millions
ness explained that the fidelity branch of the business
was conducted just like an, ordinary insurance buSi
hess, remarking'
Tho more risks VIZ get the safer we are.
o~How do You make that Quit. A.-Easy enough.
An insurance company that would die on the premiums
derived from lU0 policies would thrive II 1t bad l'ooo
O~But is 1t not possible for Epidemic Of dishonesty
70 occur that would wipe out A. Nv th emphasis
after moments hesitation. IL can conceive of coz
6agration that would wipe out insurance conn anies II
has been DONE tnk or sOme great accidents that
would run ,ccident companies and could see
nov So Sg maae Sny spdso Of
term 1t, that would injure u.s.
General Elmer furnished several statements. one OF
which showed that $336952 Is had been collected
by The company since IL began business against |
635,744 ~ paid in claims. 1t has issued over ooO
bonds of which 297 have been cancelled Out OF these
only two cases contested.
This afternoon ex-Iudge Davis will begin an exami-
nation of the Fidelity and Casualty Company;
The examination OF the American Surety Company
win be continued Monday at its offices, No. 162
Broadway.